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Which was not a reason supporting such an expense

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Problem 1: In the debate regarding whether stock options should be an expense, which of the following was not a reason supporting such an expense?

Multiple Choice

Option 1: Expensing stock options would reduce the dilution effect caused by the issuance of excessive grants to top executives.
Option 2: Expensing stock options would spur risk-taking and entrepreneurship that are crucial to innovation.
Option 3: Expensing stock options would reduce the incentive managers have to pump-up short term earnings for market price gains.
Option 4: Expensing stock options would yield more accurate earnings measurement and restore investor confidence.

 

Reference no: EM132971264

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